Chapter Seven Culture

and Diversity
 Objectives & Contents of the chapter

• Culture and cultural

diversity

• Globalization and
people at work
 Culture and Cultural Diversity

• Culture refers to values, beliefs, and customs that exist in a

society.

• Culture is also the total way of life and thinking patterns that
are passed from generations to generation.

• Diversity is Visible and non-visible differences.

 Characteristics of Culture
• Inclusive: it includes so many elements like belief, custom, norm, value etc.

• Prescriptive: Culture prescribes the kinds of behavior considered

acceptable in a society.

• Socially shared: It must be shared by members of a society, thus acting to

reinforce culture’s prescriptive nature.
• Facilitates communication: Thus, within a given group, culture makes it easier
for people to communicate with one another. Yet culture may also impede
communication across groups due to a lack of shared common cultural values.

• Learned: Culture is not inherited genetically it must be learned and acquired.

❖ Socialization or enculturation: occurs when a person absorbs or

learns the culture in which he or she is raised.
❖ Acculturation: if a person learns the culture of a society other than the

one in which he or she was raised

• Subjective: People in different cultures often have different
ideas about the same object.

• Enduring: Because culture is shared and passed down from generation

to generation, it is relatively stable and somewhat permanent.

• Cumulative: Culture is based on hundreds or even thousands of

years of accumulated circumstances.

• Dynamic: Culture is constantly changing; it adapts itself to new

situations and new sources of knowledge.
 Cultural Diversity
Cultural diversity, or sometimes referred to as
multiculturalism, is a quality of diverse and many different
cultures.

♣Cultural Diversity a system that recognizes and respects the

existence and presence of diverse groups of people within a
society.

♣ Differences are not what divides us, but rather it should be

celebrated as something that unites us as humans.
 Six core dimensions of diversity exist:
❖ Age,

❖ Ethnicity,

❖ Gender,

❖ Physical Attributes,

❖ Race,

❖ Sexual/ Affectional Orientation.

The six core dimensions of diversity are fundamental characteristics that
shape an individual's identity and experiences in society. These dimensions are:-
1. Age
➢ Refers to differences in generational experiences, perspectives, and capabilities based
on an individual’s stage in life.
➢ Age diversity impacts workplace dynamics, learning styles, and cultural values.
2. Ethnicity
❖ Represents cultural heritage, traditions, language, and shared ancestry.
❖ Ethnic diversity contributes to a richer exchange of ideas, perspectives, and cultural
understanding.
3. Gender
❖ Encompasses identities such as male, female, and non-binary, among others.
❖ Gender diversity influences roles, expectations, and opportunities in various settings,
including workplaces and communities.
 4. Physical Attributes
❖ Includes characteristics such as height, weight, physical abilities, and disabilities.
❖ Physical diversity can impact accessibility, representation, and inclusion in different
environments.
5. Race
➢ A classification based on physical traits, ancestry, and historical or social constructs.
➢ Racial diversity plays a significant role in shaping identity, experiences, and societal interactions.

6. Sexual/Affectional Orientation
➢ Refers to an individual’s emotional, romantic, or sexual attraction to others.
➢ Recognizing and respecting diverse sexual orientations fosters inclusivity and equal rights.

These core dimensions of diversity are essential for promoting equity, inclusion, and mutual respect in
society, workplaces, and educational institutions.
Understanding and embracing diversity helps build stronger, more innovative, and empathetic communities.
 Cultural Diversity….
• To work well with people from different cultures, you must first understand
your own culture.
• Knowing your own culture will help guard you against two problems that frequently
arise in international dealings.

❖ Parochialism: assuming that the ways of your culture are the only ways of doing
things.
❖ Ethnocentrism: assuming that the ways of your culture are the best ways of
doing things.
SIX dimensions Theory of culture influence employee
6 dimensions of Hofstede’s cultural dimensions theory;
➢ Geert Hofstede (1928-2020) was an academic researcher in
business and management.
❖ His model of culture was created to understand the differences
between different countries. Is a way to understand d/f cultures.

Although Hofstede’s theory was first used to discuss societal norms,

it is also highly relevant to business.
That’s because it helps organizations understand and navigate the
complexities of cross-cultural interactions.
• By assessing these dimensions, businesses can adapt their
strategies, communication, and management styles when
operating in diverse cultural contexts.
• Recognizing these cultural variations can lead to better
relationships, more effective decision-making, and increased success in
global markets, ultimately fostering a more culturally sensitive
and globally competitive business environment.
 1. Individualism-Collectivism
• Individualism-means people care more about themselves and their close family.
• They think about ‘’ I’’ before ‘’We’’.
• Individualistic cultures are cultures in which people define themselves as an
individual and form looser ties with their groups.

• These cultures value

❖ Autonomy( personal freedom),
❖ Independence of the person,
❖ Self-reliance,
❖ Creativity.
❖ Ex. USA
 Collectivism
• Collectivism means people care more about the group.
• They think about ‘’we’’ before ‘’I’’.
• they value teamwork and loyalty to the group.
• In collectivistic cultures, people define themselves as part of a group.
• Collectivistic societies emphasize conformity to the group.

• Collectivist cultures may have a greater preference for team-b a s e d

rewards as opposed to individual- based rewards.

• Example. Japan, China

 2. Power Distance index
• Shows how much people accept that power is not shared equally.
• refers to the degree to which the society views an unequal
distribution of power as acceptable.

• In low power distance cultures, egalitarianism is the norm.

• Ex. Denmark people believe everyone should be equal.

• They like to share ideas and make decisions together

 In high power distance cultures,
❖ They respect and follow their leaders without question
❖ People occupying more powerful positions viewed as more powerful and
deserving of a higher level of respect.

❖ Employees are unlikely to question the power and authority of their manager,

❖ EX. Malaysia( people accept and expect a large gap between those with power
and those without

❖ Managers used to an authoritarian style

 High Power Distance Cultures…
Definition: In cultures with high power distance, there is a significant
gap between those in authority and the subordinates.
❖ Hierarchy is accepted, and power is concentrated at the top.
Characteristics:
• Clear hierarchical structures in organizations and society.
• Authority is respected and rarely challenged.
• Communication is often top-down, with little input from lower levels.
• Decisions are made by those in power without much consultation.
• Employees may have limited autonomy and are expected to follow orders.
 3. Uncertainty Avoidance index
• Shows how confortable people are with uncertainty and change.
• Uncertainty avoidance refers to the degree to which people feel
threatened by ambiguous, risky, or unstructured situations.

• Companies operating in high uncertainty avoidance cultures also tend

to avoid risky endeavors such as entering foreign target markets unless the target
market is very large.

• People like to know what will happen next

• They prefer rules and plans to avoid surprises.

• EX. Greece
 Cultures Low in uncertainty avoidance:
➢ People are more relaxed about the future.
➢ They are okay with not knowing what will happen and are more flexible.
➢ Ex. Singapore
➢ Prefer unpredictable situations and have high tolerance for ambiguity.

➢ Employees do not expect a clear set of instructions and clarity in

expectations.

➢ Prefer to take risky situations

 4. Masculinity–Femininity
This dimension looks at what qualities a culture values.
• Masculine cultures values competition , achievement ,success and acquisition of
money and other material objects.
• Being strong and assertive is important
• Ex. Japan

• Masculine cultures are also characterized by

❖ Separation of gender roles.

❖ Men are more likely to be strong, assertive and competitive compared
to women.
• Feminine culture are cultures that values maintaining good
relationships ,caring for others/ the weak, emphasizing quality of life,
and cooperation.
• They think being kind and modest is important.

• In cultures high in femininity such as Norway and Sweden, work

arrangements such as telecommuting seem to be more popular
compared to cultures higher in masculinity like Italy and the united
kingdom.
 Short term vs long term orientation
Short term orientation long term orientation
• Oriented cultures focus on • Oriented cultures focus on the
the present or near future. future.
• They value saving money and
planning for long-term success.
• They like quick results and
• They are willing to wait for
spending money now. rewards.

• Ex. South Korea

• Ex. Nigeria and other
African nations
 Restraint vs Indulgence
Restraint vs. Indulgence is a concept from Geert Hofstede's cultural dimensions theory, which
explores how cultures differ in their tendencies toward gratification and control of desires.

Restraint Indulgence
• Indulgence cultures allow people to enjoy
life and fun.
• Control their desires and follow strict • Allow for the free expression of desires and
rules. emotions.
• They focuses on saving money and • Believe it is good to satisfy desires and have
freedom in spending money and time.
practical . • Greater emphasis on leisure and enjoyment.
• Limited gratification of desires. • Openness to expressing feelings and desires.
• Control over emotions and behaviors. • Encouragement of personal happiness and self-
gratification.
• Emphasis on duty, discipline, and • Fewer social restrictions on behaviors.
adherence to social norms. • Ex. Mexico
• Less focus on leisure and enjoyment.
• Ex. Russia & china
 Managing Cultural Diversity

• What can organizations do to manage cultural diversity?

❖ Help employees build cultural intelligence

❖ Avoid ethnocentrism
❖ Listen to locals
❖ Recognize that culture changes
❖ Do not always assume that culture is the problem
 Concepts of Organizational Culture
♠Organizational culture- refers to a system of shared meaning held by members
that distinguishes the organization from other organizations.
♠Organizational culture is the collection of beliefs, values and methods of
interaction that create the environment of an organization.
Seven primary characteristics seem to capture the essence of an
organization’s culture:
• Innovation and risk taking: The degree to which employees are encouraged
to be innovative and to take risks.
• Outcome orientation: The degree to which management
focuses on results or outcomes rather than on the techniques and
processes used to achieve them.

• People orientation: The degrees to which management

decisions take into account the effects of outcomes on people in
the organization.

• Team orientation: The degree to which work is organized

around teams rather than individuals.
• Aggressiveness: The degree to which employees a r e
aggressive and competitive rather than easygoing.

• Stability: The degree to which organizational decisions and

actions emphasize maintaining the status quo in contrast to growth.

• Attention to detail : is the degree to which to employees are

expected exhibit precision, analysis, and attention to detail
 Organizational Culture Components

• There are three major components to any organization’s

culture:

❖ Observable artifacts,

❖ Espoused values, and

❖ Basic underlying assumptions.

1. Observable artifacts: Artifacts are the visible and tangible

aspects of an organization that people hear, see or feel.

• There are six major types of artifacts:

➢ Symbols, ➢ Stories,
➢ Physical structures ➢ Rituals,,

➢ Ceremonies
2. Espoused values: are the beliefs, philosophies, and norms that a

company explicitly states. Espoused values can range from published

documents, such as a company’s vision or mission statement, to verbal
statements made to employees by executives and managers

3. Basic underlying assumptions: are the taken- for granted beliefs

and philosophies that are so ingrained those employees simply act on them
rather than questioning the validity of their behavior in a given situation.
 Function of Organizational Culture

1. It has a boundary-defining role

2. It conveys a sense of identity for organization members.

3. Culture facilitates the generation of commitment

4. It enhances social system stability.

5. Culture serves as a sense making and control mechanism that
guides and shapes the attitudes and behavior of employees.
Types of Organizational Culture
 Types of organizational c u l t u re
According to professors Robert and Kim there are four main types of
organizational culture.
1. Entrepreneurial /Adhocracy (create)Culture
♣Innovation, creativity, risk taking, and aggressively seeking
opportunities illustrate an entrepreneurial culture.

♣ The corporate structure enables a fast-paced and creative working environment

where employees can think outside the box.
♣The employees are risk taker.
♣Individual ideas are welcome, and every team member is free to experiment if the
concept contributes to the company’s success.
The social media giant, Facebook, exemplifies this culture.
 2 . C l a n (Collaborative) Culture
Organizational structure have a collaborative spirit where employees collectively contribute
to the company’s growth.
♠Employees tend to consult each other before making an important business decision, and such
organizations often thrive on loyalty.
♠Most family-owned businesses tend to adopt this corporate value style.
Tradition, loyalty, personal commitment, extensive socialization, teamwork,
self-management, and social influence are attributes of a clan culture.
Maine, a company that makes all-natural hygiene products is an example of an organization
that practices clan culture.
 3 . Bureaucratic /Hierarchy (Control)Culture
Every operation follows a procedure, and deviation from the structure is
impossible.
Is usually more formal than most.
It operates on traditional business ethics.

Routines, careful planning, employee expertise, and total risk

avoidance characterize the Hierarchy Culture.
An organization that emphasizes rules, policies, procedures, chain of command, and
centralized decision making has a bureaucratic culture.
 4. Market (Compete)Culture
It is results-driven.
The main objective of this model is to dominate the
market.

♠The main characteristics of this model is deadlines , sales targets, and

constant strategizing.
♠profitability is the primary framework for the Market Culture.
An emphasis on sales growth, increased market share, financial stability,
and profitability are attributes of a market culture.
 Globalization and People at Work
• Globalization involves growing worldwide interdependence of resource
suppliers, product markets, and business competition.
• To understand the difference in management and
organizational practices among the world’s cultures we m u s t be
familiar with the importance of
❖ Multinational employers,
❖ The diversity of multicultural workforces, and
❖ Expatriate